EU steel safeguards could raise costs for European manufacturers

A lobby group for European steel-using industries says the European Commission's proposed safeguards — cutting tariff-free import quotas and raising duties — would push up costs for manufacturers, while the Commission estimates a smaller average price rise.

EU institutions have proposed safeguards intended to protect EU steelmakers from import pressures. The European Commission's plan would cut tariff-free steel import quotas and raise duties on out-of-quota shipments. A lobby group representing manufacturers that use steel warned the measures would sharply raise costs for their sectors. The Commission estimates a modest average price increase, while steel buyers have reported substantially larger potential rises. Key points: - The Commission proposed a tariff-free import volume of 18.3 metric tons a year, down 47% from 2024 quotas, and an out-of-quota duty raised to 50%. - The European Steel Using Industries lobby said extra tariff costs could amount to between €5 billion and €9 billion per year for manufacturers. - The Commission estimates an average steel price rise of about 3.25%, while some steel buyers said prices could increase by up to 30%. - EU steel producers were reported as operating at about 67% capacity and the measures aim to push capacity toward 80%; carmakers and countries including Britain have criticized the proposal. Summary: The proposal is intended to support domestic steel production but industry groups warn it would increase costs for a range of manufacturers and may affect international competitiveness. The measure is entering the EU legislative process and precise timing or final adoption is undetermined at this time.